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Legal Terms - Article 102 of the Treaty on the Functioning of the European Union
The Treaty on the Functioning of the European Union (formerly known as the Treaty of Rome) has a provision that has legal force and applies directly to all member states of the EU.
The EU has established Community legislation that specifically targets and prohibits any instances of enterprises with a dominant position engaging in abusive practices. Instances of violations of Article 102, previously known as Article 82 and before that Article 86, encompass actions such as denying the provision of goods or services to an established customer, particularly when the customer starts competing with the dominant company. Other breaches include strategically lowering prices to hinder competition from rivals (known as predatory pricing), imposing unfair or excessively high prices, implementing tying clauses, and declining to grant licenses for intellectual property rights. Article 102 specifically forbids such behavior only if the company holds a dominating position, typically defined as having a market share of 40% or above in the EU (or a significant portion of it).
The restrictions are only applicable when the behavior has an impact on commerce among member nations.
Following Brexit, Article 102 now only applies to UK commitments when a practice within the UK has an impact within the EU. The Competition Act 1998, specifically in Chapter II, includes a similar prohibition that states that if an abuse of a dominant position has implications in the UK, it will be considered a violation of UK law.
The Treaty on the Functioning of the European Union (formerly known as the Treaty of Rome) has a provision that has legal force and applies directly to all member states of the EU.
The EU has established Community legislation that specifically targets and prohibits any instances of enterprises with a dominant position engaging in abusive practices. Instances of violations of Article 102, previously known as Article 82 and before that Article 86, encompass actions such as denying the provision of goods or services to an established customer, particularly when the customer starts competing with the dominant company. Other breaches include strategically lowering prices to hinder competition from rivals (known as predatory pricing), imposing unfair or excessively high prices, implementing tying clauses, and declining to grant licenses for intellectual property rights. Article 102 specifically forbids such behavior only if the company holds a dominating position, typically defined as having a market share of 40% or above in the EU (or a significant portion of it).
The restrictions are only applicable when the behavior has an impact on commerce among member nations.
Following Brexit, Article 102 now only applies to UK commitments when a practice within the UK has an impact within the EU. The Competition Act 1998, specifically in Chapter II, includes a similar prohibition that states that if an abuse of a dominant position has implications in the UK, it will be considered a violation of UK law.
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